(Solution) - On December 31 2009 Durst Company s balance sheet showed the -(2025 Original AI-Free Solution)

Paper Details

On December 31, 2009, Durst Company?s balance sheet showed the following balances related to its securities accounts:

Durst?s securities portfolio on December 31, 2009, was made up of the following securities:



During 2010, the following transactions took place:
Jan. 3 Received interest on the New York City water bonds.
Mar. 1 Purchased 300 additional shares of Herzog Corp. stock for $22,950, classified as a trading security.
Apr. 15 Sold 400 shares of the Taylor Inc. stock for $69 per share.
May 4 Sold 400 shares of the Martin Inc. stock for $62 per share.
July 1 Received interest on the New York City water bonds.
Oct. 30 Purchased 1,500 shares of Cook Co. stock for $83,250, classified as a trading security.
The fair values of the stocks and bonds on December 31, 2010, are as follows:
Herzog Corp. stock $76.60 per share
Taylor Inc. stock $68.50 per share
Cook Co. stock $55.25 per share
New York City water bonds $20,555
Martin Inc. stock $61.00 per share
Outdoors Unlimited Inc. stock $27.00 per share

Instructions:
1. Make all necessary journal entries for 2010, including any year-end accrual or adjusting entries.
2. Show how the investment securities would be presented on the balance sheet at December 31, 2010. Assume that the available-for-sale securities are classified as currentassets.